Merrick McKay (Abrdn): “It’s always a good time to invest in Private Equity” Part 2

Access to the best private equity funds—which are often oversubscribed—depends primarily on investors’ track record and credibility. Today, the top-performing managers have the ability to select their investors, making it very difficult for new players to enter the market. Established investors, who have been in the market for several decades, enjoy a key advantage: long-term relationships and already secured allocations, which they naturally seek to maintain. For less experienced investors, access to these funds is therefore limited. However, managers are now adopting a more strategic approach to the composition of their investor base. They are seeking to diversify investor profiles, particularly by incorporating new segments such as private investors or wealth management networks, which are gradually becoming more attractive. In this context, the ability to provide specific value becomes a decisive factor. For example, platforms like Altaroc offer managers structured access to a retail client base that would otherwise be difficult to reach, while simplifying the traditional constraints of feeder vehicles. This differentiating proposition is a key asset for being selected. Another essential criterion is long-term commitment. Fund managers favor investors capable of regularly reinvesting in their successive funds (re-ups), ensuring capital stability and a lasting relationship. This ability to support fund managers across multiple fund launches is a key factor in their decision-making.Ultimately, gaining access to the best-performing funds depends on three main factors: reputation and experience, the added value provided to Fund manager the ability to commit to a long-term partnership.